Coalition’s refusal to deal on safeguards mechanism risked climate change action: Woodside

The Coalition’s refusal to co-operate over a key policy is a “missed opportunity” for the country's future, a key executive claims.

Peter Dutton’s unwillingness to compromise on the government’s key election promise has been slammed by one of the country’s chief gas producers.

Woodside energy boss Meg O’Neill said the Coalition has risked “sustainable” climate change action over its refusal to deal with government on the safeguard mechanism, because she believed climate policy needed to be as centrist as possible.

In an address to the National Press Club on Wednesday, the chief executive praised Anthony Albanese and his government for “moving the policy debates towards the centre” and seeking practical outcomes for climate change and the role of the gas industry into the future.

She said it was a “missed opportunity” the Coalition did not support the safeguard mechanism, and that in doing so they left the door open for policy to be driven by “fringe” elements.

“For Australia to tackle climate change sustainably, it’s got to be done in the centre – and in a way that can endure, regardless of who is in power,” she said.

“Otherwise you ping pong from government to government, playing to the fringes with outcomes that do not serve the Australian people well.

“Just look at the past 10 to 15 years of climate policy in Australia; in the absence of certainty at a national level we have seen states implementing complex and often conflicting regulations for emissions reduction.”

Woodside Energy chief executive Meg O'Neill addressed the National Press Club on Wednesday. Picture: NCA NewsWire / Nikki Short

The government’s safeguard mechanism struggled to achieve the necessary support in the wake of the Coalition’s decision not to support it.

The Greens used their balance of power in the senate to negotiate, but were not able to get the government onside to meet their demands of outright banning new coal and gas.

Energy Minister Chris Bowen repeatedly said throughout the negotiating process that the gas industry would play a key role in transitioning Australia to net-zero.

Ms O’Neill, who is also chair of lobby group Australian Petroleum Production and Exploration Association (APPEA), said the gas industry was committed to decarbonisation but that “extremism is not the answer”.

“A vocal minority wants to shut down the industry and the jobs and livelihoods that go with it,” she said.

“They have deep pockets and are using both protest action and the courts to create uncertainty and destabilise regulatory processes to frustrate existing and new projects.”

Ms O’Neill said the Coalition’s lack of co-operation over the safeguard mechanism left the door open to ‘fringe policy’, saying climate policy needed to be centrist. Picture: NCA NewsWire / Dean Martin

She said gas was “absolutely going to be part of the mix” in meeting Australia’s 2030 and 2050 targets.

“We need to take action; we need to do our part to decarbonise our operations,” she said.

“There’s a number of things we need to do, but I think the Albanese government has done very well in terms of setting clarity and giving us a clear road map for the next seven years.

“There’s a number of things that we’re going to do to tackle our own decarbonisation.”

In her speech, she also cautioned against “overreaching” on suspected changes to industry taxes.

With Treasurer Jim Chalmers close to making changes to the petroleum resource rent tax, Ms O’Neil said “overreaching now could risk undermining future revenue”.